British Telecom proposes duct & pole broadband sharing tariff
BT Group has proposed prices for broadband rivals to use its phone line poles and underground ducts for their own fibre-optic networks, in response to the industry regulators demands to increase competition. BT and Virgin Media are Britains only telecom companies with national fibre networks for super-fast broadband, and rivals are dependent on renting infrastructure to offer their own services.
Now were doing what we promised by offering the communications industry yet another way of accessing our network in order to deliver super-fast broadband speeds to homes and businesses, said Steve Robertson, chief executive of BTs local access division Open reach, in a statement.
Regulator Ofcom put forward proposals in October to increase superfast services through duct and pole sharing and by giving companies dedicated access to new fibre lines laid by BT.
Duct and pole access could encourage other providers to extend the reach of fast broadband services to more remote areas, potentially in combination with public funding at a UK or European level, Ofcom said at the time.
BT plans to charge 0.95 pounds a metre to rent space in its ducts for a year, which it said was 15 per cent lower than equivalent average charges across France, Spain, Portugal and Germany, and 21 pounds for a pole attachment.
BT said it expects commercial launch of duct and pole services in summer 2011 after consultation with the industry. BT shares closed down 1.9 per cent at 182.09 pence, underperforming the European telecoms index, which closed down 0.6 per cent.
BT should share underground ducts, telegraph poles, says regulator
BT Group PLC will have to share its telegraph poles and underground cable ducts with its rivals under new proposals put forward by regulator Ofcom to encourage competition and boost the introduction of a super-fast broadband network.
The competitors will now be using BT’s network of poles and ducts to lay their own fibre-optic cable, while BT will provide information about the space availability and the quality of ducts and poles.
According to Ofcom half of the duct network may have room for additional cables. As per the regulator, BT should also open its fibre lines so rivals firms can provide their own services to consumers.
At the same time, BT group seemed to be happy enough with the new proposals as it would enable it to recover market share lost to rivals in recent years.
BT to launch fixed telephony in Brazil
www.WirelessFederation.com/news: Launch of commercial fixed telephony service in Brazil has been planned by UK-based telecoms operator BT Group by next month. The new service is said to be set and complete and ready for the launch.
The initial focus will be on the corporate group although any comment on any goals for 2010 in terms of subscriber numbers is declined by the company. NGN infrastructure provided by domestic equipment manufacturer Tropico will be utilized by BT Brazil to provide the new service. Sao Paulo, Rio de Janeiro and Curitiba will receive the service initially.
According to BT Brasil general director Sergio Paulo Gallindo, with this launch the firm will complete its portfolio in Brazil, offering a unified communications solutions for the enterprise segment.
Ex-BT CTO joins HUAWEI
Huawei, a leader in providing next-generation telecommunications network solutions for operators around the world, today announced that Matt Bross, the former BT Group Chief Technology Officer and CEO of BT innovate, has joined Huawei as its Chief Technology Officer, with effect from October 1.
In this role, Mr. Matt Bross will focus on identifying global telecommunications industry and network architecture trends that will guide Huawei’ s continuous customer-centric innovation of products and solutions. He will also support the company’ s efforts in delivering the latest products and solutions for North American customers.
“We warmly welcome Matt Bross to Huawei,” said Mr. Ken Hu, Executive Vice President of Huawei. “Mr. Bross is a communications technology visionary with a wealth of industry experience. He is also a business leader with a strong spirit of innovation and will help Huawei better understand customer requirements to create more business value.”
“I am honored to join a dynamic company such as Huawei. The company’ s solutions, developed through customer-centric innovation, have won wide recognition among the world’ s top operators. I look forward to working closely with Huawei’ s technology and management teams in developing a world-leading solutions portfolio that fully meet customer requirements,” said Mr. Matt Bross, Chief Technology Officer for Huawei.
Mr. Bross has had a long and distinguished career in the telecommunications industry. Most recently, he was Group Chief Technology Officer of BT Group and CEO of BT innovate, responsible for technology strategy, vision and innovation across all BT divisions. Mr. Bross was a driving force behind BT’s 21st Century Network transformation program and led a global BT technology and research organization that spanned the Asia-Pacific, the U.S. and Europe. Previously, Mr. Bross held senior positions at ConTel, MasterCard,Critical technology a company he founded and Williams Communication.
Romano Prodi Versus Telecom Italia
When he took over from Silvio Berlusconi as Italian prime minister earlier this year, Romano Prodi could credibly paint himself as the brave reformer of Italy’s moribund economy.
An economist by training and a former president of the European Commission, Prodi appeared to acknowledge the changes needed if Italy was to adapt to the demands of a single currency.
Now Prodi has become embroiled in a row with Marco Tronchetti Provera, who resigned as chairman of Telecom Italia SpA last week after Prodi objected to plans to split up or sell the company’s wireless operations. Tronchetti Provera remains chairman of Pirelli & C. SpA, the largest investor in the holding company that owns 18 percent of Telecom Italia.
The country will ultimately be the loser from such political interference in corporate decisions — and the euro area will suffer as well. Prodi has dashed hopes of serious change in Italy. Its exit from the euro has never looked more likely.
“What happens in Italy is crucial to the euro area, because of its political and economic significance,” Simon Tilford, head of the business unit at the Centre for European Reform in London, said in a telephone interview. “The cyclical pickup in the European economy has probably been the very worst thing that could happen to Italy because it has emboldened the people who are opposed to reform.”
There is certainly plenty of evidence for that in the telecommunications sector.
Telecom Italia is a substantial company in its industry. With a market value of about 41 billion euros ($52 billion), it is similar in size to France Telecom SA, and bigger than the U.K.’s BT Group Plc. You might think Telecom Italia’s strategy and direction should have been left up to Tronchetti Provera and the rest of the company’s management.
`Surprised and Disturbed’
Last week, Tronchetti Provera came up with a plan to refocus the business on providing broadband Internet connections and selling media content. It will create separate companies for the wireless unit and fixed-line access network, possibly including a sale of the mobile-telecommunications division, or bringing in outside investors.
In most countries, Tronchetti Provera’s proposal would have been a small story on the business pages. In Italy, the prime minister gets involved. Prodi said he was “surprised and disturbed” by the plan. Of course, the unions were up in arms.
Tronchetti Provera had no choice but to resign, making way for Guido Rossi, the 75-year-old former head of the Italian stock market regulator. Yet the row wasn’t settled even by the delivery of the chairman’s head on a platter. On Sept. 18, Angelo Rovati, one of Prodi’s chief economic aides, resigned amid stories in the Italian press that the government aimed to bring Telecom Italia’s fixed-line business back under its control.
Two Lessons
Certainly investors could only look on with bemusement. “This suggests an increasingly interventionist government stance,” Merrill Lynch & Co. said in a note to investors.
There are two lessons to learn from Telecom Italia’s experience with Prodi. One is corporate, the other political.
For investors, Telecom Italia now looks like a mess.
Tronchetti Provera’s plan would have struck most outsiders as sensible. Around the world, telecommunications companies have realized that old-style fixed-line businesses will come under increasing pressure. People can make free calls on the Internet, or they can use their mobile phones.
Against that, providing broadband connections is potentially a huge business, and the traditional telecommunications incumbents have the infrastructure that puts them in the best position to provide that service.
Insiders Make Decisions
Ditching the older, lower-growth units and concentrating on the more dynamic businesses can be considered a good strategy for any industry. Telecommunications should be no exception.
Next, whether or not you agreed with Tronchetti Provera’s strategy, it is clear that the chairman and his managers were in a far better position to judge the direction the company should take than the prime minister.
Telecom Italia belongs to one of the fastest-changing, most fluid industries in the world — and one where there will be big prizes for the companies that make the right calls. Decisions must be made by the insiders who know the issues, not by a group of politicians with only a fleeting knowledge of the business.
Tronchetti Provera remains an influence on Telecom Italia as chairman of Pirelli. The stage is set for more infighting and blood-letting, probably the last thing Telecom Italia needs as it tries to build its future.
Euro Exit
Italy should be concentrating on technology-led, high-value industries such as telecommunications as it attempts to transform its economy. Prodi clearly refuses to accept that.
We can forget about reform of Italy’s ossified economy. The new prime minister would rather go back to the old-style deals between government, unions and big business. Yet without genuine moves toward a more flexible, open economy, it is impossible for Italy to remain in the euro.
Only Italy can lose in the battle between Prodi and Tronchetti Provera — and the rest of Europe will suffer as well.
Source- http://quote.bloomberg.com
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